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Investing.com - TD Cowen has reiterated its Buy rating on AerCap Holdings (NYSE:AER) with a price target of $130.00. The aircraft leasing giant, currently trading at $112.71 with a market cap of $19.65B, shows strong potential with a P/E ratio of just 6.95x, according to InvestingPro data.
The research firm believes AerCap could benefit if Spirit undertakes disposals, allowing AerCap to deploy capital more quickly, potentially enhancing returns and earnings per share. This view aligns with the broader analyst consensus, as InvestingPro data shows analyst price targets ranging from $120 to $144, with impressive gross profit margins of 58.6%.
TD Cowen estimates that based on a target leverage of 2.7x, AerCap would need approximately $540 million in equity to purchase $2 billion of aircraft assets, which could increase annual EPS by roughly $0.40.
The firm notes that while it doesn’t expect all of AerCap’s $3.5 billion of excess capital to be used for aircraft purchases, full deployment could fund up to $13 billion in aircraft acquisitions.
Such a scenario could add an estimated $2.60 to AerCap’s annual earnings per share, according to TD Cowen’s analysis.
In other recent news, AerCap Holdings N.V. has completed 116 aircraft transactions in the second quarter of 2025. This includes 71 lease agreements for various aircraft, engines, and helicopters, as well as 21 purchases that expanded its owned portfolio with new Airbus, Boeing, and Embraer aircraft. In a significant legal development, AerCap has won a $1 billion insurance claim related to aircraft and engines stranded in Russia due to geopolitical tensions. The Commercial Court in London ruled in favor of AerCap, allowing the company to recover this amount under its "War and Allied Perils" insurance policy. Additionally, AerCap delivered the first of twenty Airbus A321LR aircraft to Etihad Airways, marking a notable expansion in Etihad’s fleet with its first A321LR. These recent developments highlight AerCap’s active engagement in the aircraft leasing market and its successful navigation of complex legal and operational challenges.
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